Merkel and Putin 'satisfied' as pipeline deal with US agreed – Germany to fork out $1BN

Russia: Expert discusses Nord Stream and Navalny

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The Chancellor discussed the project with the Russian President today, as the publication of a joint agreement between Germany and the United States was expected. A statement released by the Russian government read: “The leaders are satisfied with the approaching completion of the Nord Stream 2 gas pipeline.

“The Russian president noted the consistent commitment of the German side to the implementation of this project, which is exclusively commercial in nature and aimed at strengthening the energy security of Germany and the European Union.”

The pair also touched on the possibility of extending the agreement between Gazprom and Ukraine’s Naftogaz on the transit of gas via Ukraine after 2024, the statement said.

America has long opposed the pipeline, which will allow Russia to export gas to Germany and potentially cut off other nations.

However, the Biden administration has chosen not to try to kill it entirely with sanctions.

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Putin and Merkel are ‘satisfied’ with the near completion of Nord Stream 2 (Image: GETTY)

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Angela Merkel is preparing to step down as Chancellor in September (Image: GETTY)

This evening the Washington Post reported that the US and German governments had reached an agreement on the project, ending a longstanding dispute between the two allies.

Under the deal, Germany agreed to invest in Ukraine’s green technology infrastructure and the US will end its effort to block the pipeline, the Post said.

The Germans also promised a $1 billion energy fund for Kiev. 

The deal will pave the way for the completion of the $11 billion pipeline.

READ MORE: Brexit triggers chaos for German fishermen – risk spat with Norway

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Joe Biden has reached a landmark deal with Angela Merkel (Image: GETTY)

The pipeline, which is 98 percent complete, runs under the Baltic Sea.

It will carry gas from Russia’s Arctic region to Germany.

As part of its agreement with the US, Germany also committed to take national-level actions and press for action, including sanctions, at the European level, if Russia uses energy as a weapon in dealing with other countries, according to a senior US State Department official.

A joint statement from Berlin and Washington read: “The United States and Germany are united in their determination to hold Russia to account for its aggression and malign activities by imposing costs via sanctions and other tools.”


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Nord Stream 2 will funnel gas from Russia’s Arctic region to Germany (Image: GETTY)

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Nord Stream 2 has caused an upset in US-Germany relations (Image: GETTY)

If Russia attempts to “use energy as a weapon or commit further aggressive acts against Ukraine,” Germany will take steps on its own and pushing for actions at the European Union, including sanctions, “to limit Russian export capabilities to Europe in the energy sector,” the statement added.

It continued: “This commitment is designed to ensure that Russia will not misuse any pipeline, including Nord Stream 2, to achieve aggressive political ends by using energy as a weapon.”

Ukrainian President Volodymyr Zelenskiy said he was looking forward to “frank and vibrant” discussion with his US counterpart President Joe Biden on threats from the Nord Stream 2 pipeline.

The White House said the two leaders would meet in Washington next month to discuss energy issues and threats posed by Russia to the eastern European country’s sovereignty.

Russia v Ukraine

Russia v Ukraine (Image: EXPRESS)

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Merkel and Putin spoke about Nord Stream 2 today (Image: GETTY)

Ukraine ratcheted up its opposition to the gas project by preparing to kick-start official consultations with the EU and Germany today.

Dmytro Kuleba, the country’s foreign minister, said on Twitter that official notes to Brussels and Berlin had already been sent.

He made the statement minutes after Germany and the US jointly announced their landmark deal.

He said: “Ukraine is officially initiating consultations with @EU_Commission & Germany on NS2, which threatens Ukraine’s security, violates the diversification principle of the EU Energy Union. Notes to Brussels & Berlin already sent.”

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Nord Stream 2 is 98 percent complete (Image: GETTY)

Heiko Mass, Germany’s foreign minister, said he was relieved at the signing of the deal with the US.

He tweeted: “I am relieved that we have found a constructive solution regarding Nord Stream 2 with the United States.

“We will help Ukraine build up a green energy sector and push to secure gas transit through Ukraine in the coming decade.”

More to follow…

Harry Byrne

Harry Byrne

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